Paramount Pictures Extends Output Deal with MGM+ Through 2025: A Deeper Dive into the Evolving Streaming Landscape

Paramount Pictures and MGM+: A Symbiotic Relationship

In a move that underscores the dynamic shifts in the entertainment industry, Paramount Pictures has secured an extension of its output deal with MGM+, solidifying their partnership through 2025. This extended agreement, which follows the initial pact inked in 2021, signifies the continued collaboration between these two major players in the film and streaming arenas.

The 2021 agreement between Paramount Pictures and Epix, now known as MGM+, modified the original five-year output deal signed in 2017. This modification reflects the evolving landscape of streaming and the changing dynamics between studios and networks.

Under the terms of the renegotiated agreement, most of Paramount Pictures’ theatrical movies will continue to premiere on Paramount+ before making their way to MGM+. This strategic move aligns with Paramount Global’s announcement in 2022 that, starting with 2024 film releases, Paramount+ will become the exclusive streaming home for all new Paramount Pictures movies in the United States following their theatrical runs.

Paramount+ as the Streaming Destination for Paramount Pictures

With the Pay 1 window becoming increasingly fluid, Paramount+ has emerged as the primary streaming destination for Paramount Pictures’ movies. This strategy aligns with the industry trend of studios consolidating their content on their own platforms, seeking greater control over distribution and audience engagement.

The upcoming 2024 film “Mean Girls,” a highly anticipated box office hit, will be the first major release to exclusively stream on Paramount+ after its theatrical run. This move further solidifies Paramount+’s position as the go-to platform for Paramount Pictures’ content.

Paramount Pictures’ Sub-Licensing Strategy

In addition to securing the Pay 1 window for its theatrical releases, Paramount Pictures has also been actively pursuing sub-licensing opportunities with MGM+. This strategy allows Paramount Pictures to monetize its older titles and non-Paramount movies licensed by MGM+, including content from MGM and Sony Pictures.

Previously, Epix had “white label” deals for its movie titles with Amazon and Hulu. However, with the expiration of these agreements, Paramount Pictures has directed these films to Paramount+, further consolidating its streaming presence.

The Way Forward: Paramount Pictures and MGM+ in a Streaming-Dominated Era

The extension of the output deal between Paramount Pictures and MGM+ underscores the ongoing transformation of the entertainment industry. As streaming continues to reshape the film release model, studios and networks are adapting their strategies to capitalize on the opportunities presented by this evolving landscape.

Paramount Pictures’ focus on Paramount+ as the primary streaming destination for its movies reflects the industry’s broader trend toward platform consolidation. By maintaining control over distribution and audience engagement, Paramount Pictures aims to maximize the value of its content and strengthen its position in the competitive streaming market.

The sub-licensing strategy adopted by Paramount Pictures further demonstrates the studio’s commitment to monetizing its extensive library of titles. By leveraging MGM+’s platform, Paramount Pictures can reach a wider audience and generate additional revenue streams.

As the streaming era continues to evolve, Paramount Pictures and MGM+ are well-positioned to navigate the changing landscape, leveraging their partnership to deliver compelling content to audiences while optimizing their respective business strategies.

EXCLUSIVE: Paramount Pictures Has Quietly Extended Its Output Deal with MGM+ Through 2025

Sources close to Deadline have revealed that Paramount Pictures has quietly secured an extension of its output deal with MGM+ through 2025. This development comes after the initial pact between the two companies, inked in 2021, was set to expire in December 2023.

The decision to extend the agreement was not a foregone conclusion, considering the significant changes that have occurred at MGM+ in the past two years. The network, formerly known as Epix, underwent a change in ownership and rebranding following Amazon’s acquisition of MGM in 2022.

According to an informed source, the Pay 1 deal was extended sometime last year, encompassing the 2025 Paramount Pictures slate under the terms of the renegotiated 2021 agreement. This agreement stipulates that most of the studio’s theatrical movies will premiere on Paramount+ before transitioning to MGM+.

The latest example of this arrangement is the upcoming summer tentpole “Mission: Impossible – Dead Reckoning,” which has secured a January 25 premiere date on Paramount+ in the United States and Canada, followed by a February rollout in international markets.

Paramount Global announced in 2022 that, starting with 2024 film releases, Paramount+ would become the exclusive streaming home for all new Paramount Pictures movies in the United States following their theatrical runs.

Under the deal with MGM+, Paramount has been actively acquiring Pay 1 windows for movies that are initially released on Paramount+. This strategic move aligns with Paramount Global’s broader focus on Paramount+ as the primary streaming destination for its content.

The Pay 1 window has become increasingly complex in the streaming era. Historically, Pay 1 deals between studios and premium cable networks served as financial pillars for the film release model, providing stability in the unpredictable feature film industry.

However, evolving consumer expectations and challenges to theatrical moviegoing during the COVID-19 pandemic have prompted major media companies to reconsider the traditional structure. NBCUniversal’s Peacock has embraced this shift by making Universal’s slate available in the Pay 1 window, recognizing the potential of these theatrical releases to attract new subscribers.

The 2021 Epix agreement modified Paramount Pictures’ original five-year output deal, which was signed in 2017 when the network was launched as a joint venture among Paramount, Lionsgate, and MGM. Epix eventually became fully owned by MGM, which acquired its two partners’ shares.

The 2021 deal also includes provisions for Paramount Pictures to pay MGM+ for sub-licensing older titles and non-Paramount movies licensed by the network, including content from MGM and Sony Pictures.

Previously, Epix had “white label” deals for its movie titles with Amazon and Hulu. However, with the expiration of these agreements, Paramount Pictures has directed these films to Paramount+, further consolidating its streaming presence.